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Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
December 21, 2023 Reviewed by
Kevin is a licensed CPA in the state of California. Prior to Numeral, Kevin operated multiple ecommerce businesses and worked at KPMG as a tax advisor.
This guide to the Georgia sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.
In this articleThis guide to the Georgia sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings.
| State Tax Authority | Georgia Department of Revenue |
| Georgia Base Sales Tax Rate | 4% |
| Local Tax Rates | 1-5% |
| 2023 Georgia Sales Tax Rate | 4-9% |
| Tax Threshold | $100,000 in sales or 200 transactions |
| Website | dor.georgia.gov |
| Tax Line | (877) 423-6711 |
The Georgia sales tax rate in 2023 is 4-9%, comprising a base rate of 4% plus a mandatory local rate between 1-5%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 9%.
You can look up the full table of sales tax rates in each city and county in Georgia here.
Georgia's state and local sales tax rates have remained the same. The last rate change occurred on April 1, 2018, when the state-wide TAVT (title ad valorem tax) rate increased from 6.6% to 6.8%. Georgia remains one of the only
As an ecommerce seller, here's how you calculate Georgia's sales tax: Add the 4% state tax plus the local tax rate based on the shipment or delivery address, then multiply the total rate by the purchase price.
For example, if the local rate is 3% and the purchase price is $100, the sales tax would be $7.
Georgia can assess penalties of 5% per month up to 25% of the tax due. Interest accrues at 1% per month. Criminal sanctions are also possible for wilful violations.
Yes, Georgia is a Streamlined Sales Tax state member. It became an associate member of Streamlined Sales Tax on January 1, 2011, and a full member state on July 1, 2011.
| Type of Nexus | Threshold |
|---|---|
| Physical presence | Any physical presence |
| Economic nexus | $100,000 in sales or 200 transactions |
| Nexus with marketplaces | >$100,000 in sales facilitated by a marketplace |
| Payroll compensation | None |
Yes, wholesalers in Georgia require a sales tax permit unless all their sales are made exclusively to buyers who will resell the items and provide valid resale certificates.
Yes, even temporary selling trips into Georgia require a seller's permit and sales tax collection. Use the state's quick sales tax registration to file and remit the tax.
Georgia provides sales tax exemptions for some specific goods and entities:
No, most groceries are exempt from Georgia sales tax. However, prepared foods are still taxable even when purchased at a grocery store.
All clothing purchases in Georgia are subject to the combined state and local sales tax rate at the point of sale. There are no apparel exemptions.
Georgia considers specified digital products like music, movies, books, and software taxable. Other digitally delivered services are generally not taxable, though.
SaaS and other online services are not subject to Georgia sales tax. Only digital products delivered electronically are taxable.
Georgia taxes only a handful of specific services like computer services, maintenance contracts, and cable TV services. Most services are not subject to Georgia sales tax, though.
Georgia allows some municipalities and counties to impose an extra 1-3% sales tax specifically on food and beverages sold in restaurants and similar establishments.
Remote sellers with over $100,000 in Georgia sales or 200 transactions must register and collect Georgia sales tax. Use tax reporting requirements have also been enacted for non-collecting remote sellers.
Georgia has enabled cities and counties to levy numerous local-option sales taxes to fund various public facilities and special projects, resulting in over 500 separate local sales tax jurisdictions across the state.
Let’s look at the steps to collect sales tax in Georgia now.
Even if you do not have a physical presence in the state, you may still meet the economic nexus thresholds that require registering to collect Georgia sales tax. Specifically, you must register if you make over $100,000 in sales or complete over 200 transactions in Georgia in the current or previous calendar year.
Once registered, you must collect and remit sales tax on all taxable sales shipped to Georgia, regardless of whether you have a physical presence—the Georgia Department of Revenue guides out-of-state sellers on registering and understanding their obligations.
Some critical requirements for out-of-state sellers include:
Marketplace facilitators and sellers also have specific requirements for reporting sales correctly. See the marketplace nexus rules here for more details.
Yes, Georgia requires ecommerce business owners and remote sellers to collect sales tax on delivery, transportation, shipping, and handling charges related to the sale of tangible personal property, regardless of whether these charges are separately stated or optional.
The only exception is when delivering non-taxable goods. Then, shipping and handling would not be subject to Georgia sales tax. See Rule 560-12-2-.110 for more information.
All registered sellers in Georgia must file sales tax returns reporting their total sales and the sales tax collected. You can file your returns online through the Georgia Tax Center or submit paper Form ST-3.
When filing your Georgia sales tax return, you must:
Tax payments must be made simultaneously with return filing by the due date through electronic funds transfer or check.
The Georgia DOR assigns a filing frequency to each business based on their anticipated taxable sales volume. This schedule is either monthly, quarterly, or annually.
Sales tax returns are due the 20th day following the end of the filing period.
Monthly
| Period | Due Date |
|---|---|
| January | February 20, 2023 |
| February | March 20, 2023 |
| March | April 20, 2023 |
| April | May 22, 2023 |
| May | June 20, 2023 |
| June | July 20, 2023 |
| July | August 21, 2023 |
| August | September 20, 2023 |
| September | October 20, 2023 |
| October | November 20, 2023 |
| November | December 20, 2023 |
| December | January 22, 2024 |
Quarterly
| Period | Due Date |
|---|---|
| January – March (Q1) | April 20, 2023 |
| April – June (Q2) | July 20, 2023 |
| July – September (Q3) | October 20, 2023 |
| October – December (Q4) | January 20, 2024 |
Annual
| Period | Due Date |
|---|---|
| January – December | January 22, 2024 |
Georgia imposes a 5% monthly penalty of up to 25% of the tax due for filing late sales tax returns. 1% monthly interest also accrues on any unpaid tax. Willfully filing fraudulent returns can also result in criminal penalties.
Georgia sales tax returns and payments are due on the 20th of the following month after the end of the filing period.
Yes, every business must submit a sales tax return for each filing period, even if you did not collect or owe any sales tax.
You can submit a written request for a 30 to 60-day filing extension to the Georgia DOR before the expected due date. An extension on payment is only allowed with interest accruing, though.
You can file an amended return in Georgia to correct errors or report additional tax due on a previous return. You must pay any extra tax owed plus applicable penalties and interest.
Georgia imposes a penalty of 5% per month up to 25% maximum for late filing, late payment, or incorrect filing of sales tax returns. 1% monthly interest also applies to any unpaid tax.
The audit & appeals process is a series of steps a business must go through if audited by the Georgia Department of Revenue (GDOR). The process begins with the auditor contacting the firm to schedule an audit.
The auditor will then thoroughly review the business's extensive records, books, invoices, bank statements, and tax returns from the last three years to determine if any sales tax was incorrectly reported or not paid.
Suppose the auditor finds any substantial discrepancies or suspicious issues. In that case, they will issue a detailed notice of proposed assessment (NPA) report with their findings and calculations of taxes, penalties, and interest owed.
The business then has 30 days to protest and appeal the findings formally. A conference will be scheduled to discuss the audit results with a GDOR representative. If the appeal is ultimately denied after negotiations, the business can further appeal by filing a petition in the Georgia Tax Tribunal or Superior Court.
The key steps in a Georgia sales tax audit are:
In a Georgia sales tax audit, the auditor will thoroughly examine your financial statements, books, accounts, papers, records, memoranda, and other documents to verify you paid the correct sales tax. Expect to provide extensive documentation on your transactions, customers, product costs, payments received, and exemptions allowed.
The auditor has the right to copy or photograph any relevant records, so be prepared to gather and organize everything they request. The more upfront you are, the easier the process will be.
If you disagree with the audit assessment, you can contest the findings by:
Contesting audit findings often leads to reduced assessments or corrected errors. It allows you to explain questionable items or transactions before receiving a final bill.
Here are the steps for registering for sales tax in Georgia:
Register online for a Georgia sales tax account through the Georgia Tax Center. Provide your business information, including:
Once registered, you must charge, collect, report, and remit the proper sales tax on Georgia transactions. Use sales tax software or Form ST-3 for filing.
Online sellers must register for Georgia sales tax if they:
See Georgia's guidance for the latest remote seller rules.
There is currently no fee to obtain a Georgia sales tax registration. However, other business licensing fees may apply.
For help with sales tax compliance in Georgia, contact:
Also, if you someone to manage your sales tax across states including Georgia, book a demo with Numeral and we'll show why our customers spend less than five minutes monthly on sales tax.
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
Spend fewer than five minutes a month on sales tax compliance with our white-glove service.
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